Non-alcoholic beverages: a new trend among younger generations

Movements like "sober curious" and "mindful drinking" are gaining attention among younger generations. These terms refer to people who choose to consume less or no alcohol.

Millennials, born between 1981 and 1996, and Generation Z, born from 1997 onwards, generally lean towards a healthier lifestyle, and reducing alcohol consumption is part of that shift.

This shows how the habits of younger generations directly influence consumption patterns. As a result, the beverage industry needs to pay close attention to these consumers' new preferences.

Read the full article to understand more about this topic.

The trend of decreasing alcohol consumption

Over the past 20 years, alcohol consumption rates have significantly dropped in various countries. In some parts of the world, such as Norway, Sweden, and Lithuania, around 50% of people now follow this lifestyle. In Lithuania, this percentage reaches as high as 80%.

Americans have also reduced their alcohol consumption in 2024. According to a report by NCSolutions, two in five people (41%) are trying to drink less. In the United States, 61% of Generation Z members planned to reduce their alcohol intake this year, while among Millennials, the figure was 49%.

Impacted by the "sober curious" movement, the European Union, known for being the largest wine producer in the world, is experiencing excess stock. Data from the European Commission shows that wine sales dropped by 35% between 2022 and 2023.

Even in Germany, a country known for its high beer consumption, the average per capita consumption dropped to 87.2 liters in 2022, down from 100 liters in 2013. According to the brewers' association, the number of brands offering non-alcoholic beer in the country has doubled since 2010 and is now exceeding 700. The association forecasts continued growth in this niche.

In Brazil, the percentage of people aged 18 to 24 who drink alcohol three or more times a week dropped from 10.7% to 8.1% in 2023.

Market opportunity for non-alcoholic beverage production

Even though they are opting to drink less or no alcohol, young people in the "mindful drinking" movement still want to be part of social norms by enjoying beverages like mocktails (non-alcoholic cocktails) or other ready-to-drink options.

This presents a significant market opportunity for the beverage industry to invest in this niche. A 2023 global study by IWSR, a beverage data and market analysis consultancy, pointed out that by 2024, alcohol-free or low-alcohol products would see a 31% increase in consumption volume.

Mordor Intelligence predicts that between 2023 and 2028, the Compound Annual Growth Rate (CAGR) of non-alcoholic beverages will reach between 4.1% and 4.7%.

The investment can come in different forms, so here are some of the key trends the beverage industry should watch:

1 - Ready-to-drink beverages

Non-alcoholic, ready-to-drink beverages like alcohol-free drinks, energy drinks, teas, soft drinks, kombucha, and flavored sparkling water are among the top choices for young people.

These drinks offer consumers new experiences and flavors, as well as the convenience of buying something pre-made.

2 - Mocktails

These are non-alcoholic cocktails. They offer the same or similar flavors as alcoholic cocktails but come in alcohol-free or low-alcohol versions. Non-alcoholic ready-to-drink beverages are used to replace spirits like gin, vodka, and others.

Big brands, such as Absolut, are investing in non-alcoholic versions of their products. There is also Ceder's, an aromatic blend of 18 botanicals that mimics the flavor of the popular gin spirit, a drink that saw a consumption boom in recent years.

These drinks should also be visually appealing, as younger generations enjoy sharing their experiences on social media, and beautiful photos are important for their posts.

3 - Adaptogenic beverages

Adaptogenic beverages are another trend capturing the attention of young people looking to reduce or eliminate alcohol. These are plant-based drinks that mimic the taste and effect of alcohol but with less intensity.

Going beyond simply mimicking the taste and effects of alcohol, many companies investing in this market are incorporating ingredients that promote relaxation and sociability while being functional, offering health benefits without the harmful effects of alcohol.

This market surpassed the $10 billion mark in 2022, with projections to nearly double, reaching approximately $19 billion by 2032, according to data from Global Market Insights (GMI).

Yerba mate in beverage trends

Yerba mate fits into all non-alcoholic beverage trends, whether as a tea, energy drink, or ingredient in mocktails or adaptogenic beverages.

The native South American plant not only has a distinctive flavor but also boasts a high percentage of energizing compounds, including methylxanthines caffeine, theobromine, and theophylline.

Additionally, yerba mate contains various other health-promoting components that go far beyond its stimulating power. Some of these are antioxidants, flavonoids, simple sugars, minerals, B-class vitamins, dietary fibers, and proteins. This makes it ideal for use in functional beverages.

Learn more about yerba mate. Contact the sales team at Triunfo do Brasil, the largest producer of organic yerba mate in Brazil, the native land of this plant.